SA Banks Face Lawsuits Over Steinhoff

The Dutch Investors’ Association (VEB), which launched legal proceedings against Steinhoff International in January, has notified the three banks involved in Steinhoff’s Frankfurt listing that it is holding them liable for damages incurred by Steinhoff shareholders. The move by VEB stems from the role played by Absa, Barclays and Commerzbank in Steinhoff’s listing on the Frankfurt Stock Exchange in November 2015.

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Shoprite And Checkers Will Offer Students 10% Discounts

Shoprite and Checkers announced that registered South African students can get 10% off at any Shoprite and Checkers stores starting next week Wednesday the 25th of April 2018. The student discount is valid for four days per month until the end of October, for all purchases up to a maximum of R1,500.

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Eskom Facing Coal Shortages

Seven Eskom power stations have coal stockpiles that are lower than the levels required‚ Parliament heard on Wednesday. Urgent authorisation had to be obtained from the Treasury to purchase more coal without having to go to tender‚ acting group executive for transmission Willie Majola told members of Parliament’s public enterprises committee. A recovery plan was in place and coal was also being moved from stations that had healthy stockpiles to stations that did not have sufficient stock.

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Andile Mazwai Resigns As Rebosis CEO

Rebosis Property Fund said on Wednesday its CEO, Andile Mazwai, had resigned and the firm would postpone the release of its interim financial results, sending shares down more than 10%. The company said in a statement its current Executive Deputy Chairman Sisa Ngebulana would be appointed as the interim CEO.

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Mark Lamberti Quits As Imperial CEO

Mark Lamberti has resigned as Imperial CEO‚ following an adverse judgment in the case brought by fired employee Adila Chowan‚ whom he called a “female employment equity candidate”. Imperial has promoted its chief financial officer‚ Osman Arbee‚ to succeed Lamberti as CEO on May 1.

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Audi And Porsche Raided Over Emissions Scandal

Porsche is the latest Volkswagen brand to be sucked into the ongoing diesel emissions cheating scandal that first erupted three years ago. German police and prosecutors raided a number of Audi and Porsche properties on Wednesday in search of documents as part of an investigation into two top Porsche executives and one former employee.

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Facebook Data Breach Affected 100,000 South Africans

Facebook has told SA’s information regulator that almost 100,000 people in the country were affected by its data leak — far more than estimated. Last week the information regulator said it would “proactively and voluntarily engage Facebook with regards to the alleged data breach”, and that it would ask the company to clarify the extent of the data leak and to state what corrective measures it was taking. This was after the personal information of about 87-million Facebook users – mostly in the US — was misused by Cambridge Analytica, a political consultancy that obtained the data from a personality app.

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Currencies: Bcoin R100,518 . Ether R6,549 . R/USD11.93 . R/GBP16.94 . R/EUR14.76

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ANC Shifts Policy On Land And SARB

The ANC has adopted a resolution calling for the nationalisation of the central bank and land expropriation without compensation. Party delegates also agreed that Treasury must develop a wealth tax that may be in the form of a land tax in an effort to promote equity and raise the revenue in the state coffers.

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30000 Shoprite Employees To Go On Strike

Pre-Christmas shopping may be disrupted on Friday when supermarket workers down tools. The South African Commercial‚ Catering and Allied Workers Union and Congress of South African Trade Unions have announced a planned one-day nationwide strike by Saccawu members at Shoprite Checkers on Friday 22 December 2017.

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Investors Sue Steinhoff In Germany

The case against the owner of Mattress Firm in the U.S. and Conforama in France was filed in Frankfurt district court, TILP law firm said in a statement on Wednesday. Investors are seeking to recover funds after the South African company reported accounting irregularities, causing the stock to slump about 90 percent over two weeks. The class-action-style lawsuit, filed Tuesday, is likely to be the first of many similar cases filed by investors angry over their losses. Innsworth Litigation Funding, a London-based unit of Paul Singer’s Elliott Management Corp., has begun building a case against Steinhoff and is seeking shareholder clients willing to sue, it said last week.

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ABSA Wants Jooste Company Liquidated

Absa Bank has applied for the liquidation of former Steinhoff CEO Markus Jooste’s Mayfair Speculators, the company that, until this week owned South Africa’s best racehorse, Legal Eagle, as well as hundreds of other racehorses, a property portfolio and a chunk of Steinhoff shares. Absa has also demanded an investigation into a suspicious transaction that saw Mayfair move R1.5 billion of assets to its holding company in August this year.

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Nedbank CEO’s Open Letter To Ramaphosa

CEO Mike Brown has thrown his full weight behind ANC president Cyril Ramaphosa. Brown said in an open letter to Ramaphosa that his team was looking forward to engaging with him and addressing the pressing needs the country is facing.

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Distell To Sell Bisquit Brand

Distell has entered into a definitive agreement to sell its cognac business, Bisquit Dubouche et Cie to Italian branded beverage company Campari Group for an enterprise value of 2.5 million, or R800-million. The disposal is expected to close during the first quarter of 2018.

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Currencies: Bitcoin R264,999 . Ether R12,683 . R/USD12.75 . R/GBP16.99 . R/EUR15.12

 

Absa Report Drama. Did Thuli Mess Up?

The Public Protector’s leaked interim report that recommends Absa pay back the SA Reserve Bank (Sarb) an outstanding interest of R1.225bn is being ripped apart by Johann Rupert and apartheid era reserve bank governor Chris Stals. The argument that Absa owes SARB interest on the deal apparently hinges on a quote by former Sarb governor Chris Stals, who said Absa agreed to pay back the interest. Stals has however said he was misquoted and that Absa met its obligations in 95. Rupert on the other hand called the report a work of fiction and denied any wrongdoing. Meanwhile, the public protector has opened a case with the police over the leaking of the interim report. Thuli Madonsela may have a lot to answer to if it turns out to be true that she messed up this report.

Shoprite Increases Turnover By 14%

The Shoprite Group increased its turnover by 14.0% from R62.5 billion to R71.3 billion for the six months to December 2016. Shoprite’s non-South African supermarkets recorded sales growth of 32.3% assisted by higher inflation and achieved in the face of low commodity prices and foreign exchange shortages in certain countries. Growth on a like-for-like basis was 14.2%. The Group’s furniture division grew sales by 10.0% for the period.

Credit Regulator Takes Standard Bank To Court

The National Credit Regulator (NCR) is seeking a high court order to stop banks from unilaterally taking money from customers’ savings accounts to settle outstanding balances on their credit agreements. The regulator is seeking an order declaring that provisions of the National Credit Act supersede common law “set-off”, whereby a consumer’s debt is satisfied by setting it off against credit held by that consumer with the bank, such as in a savings account.

Theresa May Speech Leads Pound Higher

Prime Minister Theresa May pledged to pull Britain out of the European Union’s single market while staying inside parts of its customs union, saying the UK parliament will get a vote on the final Brexit deal. The prime minister didn’t say what would happen if the parliamentary vote is lost. At that point, it might be impossible to reverse the Brexit process, meaning the UK found itself outside the EU without any agreement with the bloc. That outcome would be a disaster for the UK.

British American Tobacco Buys Rest Of Reynolds

BAT has announced it will buy the 57.8% of Reynolds American it does not already own for $49.4 billion after agreeing terms with an independent Reynolds committee. The deal will consolidate its ownership of Newport, Kent and Pall Mall, which Reynolds – the second largest cigarette maker in the US – produces.

China Pledges $40bn Investment In Nigeria

Nigeria has ordered Taiwan to move its trade mission from the capital, Abuja, to the commercial hub, Lagos, following a visit by the Chinese foreign minister during which his government pledged to invest $40 billion into infrastructure in Nigeria. Interesting how other African countries are treating the One China policy after the D.A issue.

Currencies & Stuff

Oil 55.57 – Rand/USD 13.53 – Rand/GBP 16.65 – Rand/EUR 14.43